NACS Show 2003 Overview

In October, the Institute's editors made the rounds of the National Association of Convenience Stores' annual trade show. More than 22,000 people attended this year's event at McCormick Place in Chicago, including nearly 7,000 retailers, wholesalers and distributors (the buyers) and representatives from 1,400 exhibitors. The following is an overview of the announcements and introductions making news at the show, compiled from the Institute's own reporting and other media coverage.New Display Programs--Multi-Vendor Endcap Programs: Procter & Gamble devoted some of its energy to promoting a new multi-vendor endcap for snacks being offered by wholesaler H.T. Hackney Co. (and manufactured by Design Productions, Inc. See image at right.)The new "MVE" puts P&G's Pringles alongside multiple snack brands from Goodmark Foods, General Mills, Kraft/Nabisco, Kellogg, Masterfoods, and Jack Link's Snack Foods (hey, it's not a c-store program without some beef jerky) on a wire fixture with co-branded side panels. (The displays are 5.6-feet tall, 3.2 feet wide and 2.8 feet deep; they're being marketed at $321.82 apiece for an order of 500.) Theoretically, it also puts P&G -- a CPG giant, but a one-brand snack-food guppy -- and the other participants in a better position to compete for display space with DSD-powered category leader Frito-Lay.The MVE concept has the support of both the American Wholesale Marketing Association, which commissioned a study on its effectiveness, and NACS, which allotted a seminar at the show to the topic.At the seminar, Appco Convenience Centers president Danny Blackburn extolled the program's virtues. "We've had products that have been stagnant for years, buried in-line," he said. "Putting in an MVE has allowed those products to come out on the floor, and we have seen phenomenal sales increases." (Blountville, TN-based Appco operates about 50 stores in Northeast Tennessee and Southwest Virginia.)"For the last several years, we've looked at endcaps [as] ... whatever manufacturer offered us the best deal, that's the endcap we had," he said. But now, "we're taking a different approach, and looking at what endcap is going to bring us the best gross profit." The MVEs have boosted sales of participating products by 114%, according to a study conducted by Willard Bishop Consulting for the AWME's Warehouse Delivered Snacks Committee. Other AWME members, including Dot Foods and the Core-Mark division of now-defunct Fleming, have created similar endcaps, and other c-stores have been testing the concept. --P&G also offered an array of pre-packed Pringles shippers (freestanding and power wings) and an in-line shelf-set with a gravity-feed system (see image at right).--As part of an announced plan to focus more on diet SKUs in 2003, Pepsi-Cola unveiled the multi-brand Pepsi Diet Spot fixture for two-liter bottles and 12-packs (see image at right). The unit is designed for "multi-use placement" ("optional caster sets and flat wire shelves for added versatility") in c-stores, supermarkets and drugstores, and offers space for interchangeable header and side-panel graphics.--Blue Diamond entered the "on the go" fray with countertop "Nut Caddies" for its five-flavor Grab 'n Go product line (see image at right). The caddies are 9.6 inches tall, 5.3 inches wide, and tilted backward to keep the tube-shaped packages from falling forward.--Among its many new displays, General Mills is offering a multi-brand shipper for cereal SKUs (see image at right).--Pepsi-Cola's SoBe trotted out a full program for its Energy line, with costs ranging from $500 for a cooler system shaped like an Energy can to $5 for a suction-cup vault rack (see image at right).--Pump toppers should not be exclusive territory for snacks and beverages, according to Nestle's Stouffer's. The brand is offering pump toppers for its flagship and Lean Cuisine frozen-meal SKUs (see image at right).--Kellogg provided its 2004 monthly shipper schedule, which focuses on Pop Tarts, Soft Batch, Cheez-It, Nutri-Grain and Rice Krispies Treats. Also on the new list is a floorstand for Frosted Flakes (see images at right).--Frito-Lay's new lineup includes in-line systems for Lay's Stax, Oberto meat snacks, convenience foods and premium nuts, along with a multi-brand "urban" display unit featuring reversible headers: graphics targeted to Hispanics on one side, African-Americans on the other. New Products--P&G pushed its upcoming MicroScope breath strips line extension, which it is delivering through countertop displays (see image at right) and merchandising strips. The $23-million-dollar marketing plan includes media advertising and 10 million samples delivered on packs of Scope and Crest.--In Zone Brands continues its promotional-product strategy in April 2004 with Shrek Swamp Sipper SKUs. The company launches its first Hispanic-targeted extensions in April by licensing characters from Kids WB network property Mucha Lucha.--Campbell Soup Co. gives an Hispanic tweak to V8 fruit juice with Mango Peach and Guava Passion Fruit SKUs. In January, the company launches an energy drink called Invigor8. National advertising and p.r. campaigns will be supported by account-specific activity January through April and June through September. The plan also includes grassroots sampling and event sponsorships.--Sun-Maid gives "on the go" a try with Fast Fruit Fast Packs, shipped in caddies suitable for shelves or counters.Among other announced launches:--Cup-holder compatible packaging for such products as Famous Amos cookies, Cheez-Its, Cracklin' Oat Bran cereal and Campbell's Soup. (See "Packaging: 'On the Go' Designs Add Convenience" in Related Articles.)--General Mills delivers Cereal-in-a-Cup for Cheerios, Cinnamon Toast Crunch and Lucky Charms. Launched in November 2003, the packaging "makes for easier stacking and better display than the traditional bowls and boxes," according to marketing collateral. Elsewhere, the company will roll out Pillsbury Homestyle Breads and a co-branded Bugles Old El Paso salsa flavor in January 2004.--Kraft Foods' Oscar Mayer will launch adult-targeted Snacks To Go (beef salami & cheddar with crackers and two chicken nugget varieties) in February. The company claims the SKUs sales are 75% incremental to its successful Oscar Mayer Lunchables line.--Jolt Caffeine Energy Gum, from the makers of Jolt Cola. Advertising will carry a "Chew More, Do More'' tagline.--"Rollitos," a Doritos line extension from Frito-Lay. The chips are rolled like small tortillas.--A Snickers Marathon energy bar from Masterfoods USA. New Marketing Campaigns--Yoo-hoo talked up an April 2004 under-the-cap promotion called "Win Jesse James' Garage." (See sell sheets at right.) The effort leverages the popularity among 12- to 25-year-old males of "outlaw star" James from Discovery Channel's Monster Garage. More than one million prizes will be awarded, including the grand prize of a Custom Chopper, GMC Shop Truck, trip for four to visit James, tool box, and Yoo-hoo vending machine.--Dole Food Co. offers retailers a chance to win a six-day trip to Hawaii. Accounts are automatically entered when they order four cases of Dole Fruit Bowls through April 30 (see sell sheets at right).--Topps, Inc. will team with Nickelodeon properties for two promotions to be advertised on merchandisers. The company ties its Ring Pop brand with the Nick GAS (Games & Sports) network for a continuity effort in which kids collect wrappers to earn Major League Soccer tickets; a sweepstakes overlay expands the April-through-October effort. And the Push Pop brand works with nick.com for a March-through-June campaign in which kids submit on-pack codes for a chance to win a trip to Universal Studios, Orlando.--In October, Campbell's broke print advertising (in such titles as People, Men's Health, and Shape) for V8 Lemon Twist. FSIs are scheduled for January and April; TV advertising continues through July. The company will buy shelf talkers in May and June for V8 Splash Smoothies, which currently are receiving TV support and will get FSIs in January and May.

NACS Show 2003 Overview

P2PI MEMBERS

JOIN P2PI

Related Images

Company

Market Segment